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F I S C A L I M P A C T R E P O R T

SPONSOR Nava

DATE TYPED 3/14/05

HB

SHORT TITLE Instructional Material Allocation Calculation

SB 128/aSEC/aSFC/aHEC

ANALYST Segura

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to Appropriation in the General Appropriation Act

REVENUE

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY05

FY06

$200.0

Recurring

Instructional

Material Fund

(Parenthesis ( ) Indicate Revenue Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Public Education Department (PED)

SUMMARY

Synopsis of HEC Amendment

House Education Committee amended Senate Bill 128. The amendment strikes SFC amend-

ments 2 and 3. HEC expands the original sentence to include “as determined by department

rule.” The amendment strikes the provision related to “nonprofit publishers.” On page 6 line 5 of

the original bill, the amendment strikes the per diem and mileage language.

Senate Bill 128/aSEC/aSFC/aHEC -- Page 2

Synopsis of SFC Amendment

Senate Finance Committee amended Senate Bill 128/an as follows:

•

The amendment strikes all Senate Education amendments. The unencumbered

funds ratio to be held by a school district or Public Education Department remains

the same as the original bill.

•

On page 5, line 15 and line 16, it replaces the Per Diem and Mileage Act require-

ments and allows for “a stipend commensurate with the level of responsibility and

participation”.

•

It inserts a clause that would exempts In-state nonprofit publishers from fees.

•

On page 8, subsection E the SFC amendment strikes the entire subsection and in-

serts a new section. The new section allows a school district, state institution or

adult basic education center to retain funds remaining at the end of the fiscal year

to be used in subsequent years. For private schools’ any funds remaining will be

available to the PED for instructional material purchases in subsequent years.

Synopsis of SEC Amendment

Senate Education Committee amended Senate Bill 128 as follows:

•

Allows districts to retain 75% of unencumbered funds at the end of the fiscal year

while allowing the Public Education Department to use the remaining 25% unen-

cumbered funds as a credit.

•

The PED will take credit for 25% of unencumbered funds at the end of a fiscal

year.

Synopsis of Bill

Senate Bill 128 amends the Instructional Material Law, Chapter 22, NMSA 1978. The bill con-

tains an emergency clause.

Significant Issues

If Senate Bill 128 is enacted it would:

•

Create the Instructional Material Adoption Fund to allow PED to collect fees from

publishers for the submission of items to be reviewed;

•

Expand the definition of “ instructional material”;

•

Require PED to allocate by April 1(rather than by July 1) 90 percent of the initial

allocation for the purchase of instructional material;

•

Changes the distribution of instructional material funds from 30 percent minimum

to be spent on adoption to a 50 percent minimum;

•

Allows districts to retain 25 percent of unencumbered funds at the end of the fis-

cal year while allowing the PED to use the remaining 75 percent of unencum-

bered funds as a credit.

Senate Bill 128/aSEC/aSFC/aHEC -- Page 3

PERFORMANCE IMPLICATIONS

According to PED, the focused review of instructional materials by content experts and practi-

tioners will provide higher quality materials to New Mexico schools. The districts will be en-

couraged to spend all or most of the allocated funds for materials needed to assist students in

learning, rather than retaining funds over several years.

FISCAL IMPLICATIONS

Senate Bill 128 does not contain an appropriation. The bill creates a fund for the collection of

fees from publishers estimated to be $200.0. The fee is a one-time fee per year for each item

submitted for adoption.

ADMINISTRATIVE IMPLICATIONS

PED will continue to monitor the Instructional Material program.

TECHNICAL ISSUES

PED recommends the following amendments:

•

Page 5, line 15-16, strike (per diem and mileage as provided in the Per Diem and

Mileage Act), and insert “a stipend commensurate to the level of responsibility

and participation”.

•

Page 6, lines 5&6, strike per diem and insert stipends.

RS/lg:yr